Operations Management (basic functions, fundamental aspects)

The Operative administration is closely related to business administration, but is only dedicated to research and execution of all actions and operations that occur in the organization with the purpose of giving it greater value.

To achieve a good result, it is necessary to plan, organize, direct and control the resources and assets of the organization and in this way achieve increased production and customer satisfaction and attention is preserved and decreases costs. All this means that the priority of this administration is gain competitive advantage and benefit the company financially.

Operations management features

Is administration is based on specific objectives, which allows it to contain unique characteristics such as those expressed below:

• The decisions made determine the organization's production and distribution procedure.
• Decisions contain various work teams, distribution, technology and facilities to offer items and services efficient.
• In long-term decisions, this type of administration must be taken into account, so that they can be obtain favorable results, since it requires a large capital and they do not tend to easily reverse the consequences.
• Your goals mostly require a physical business expansion, therefore, it is necessary to expand the place or find one that is larger.
• They focus on the demand for the product so that they can make the best decisions, for this it is necessary take an inventory where the costs of the raw material and the value of consumer.
• Its maximum concentration is in the quality of the product.

Objectives of operations management

His objectives are specific and concrete, among them are:

• Increase in production volume.
• Efficiently use equipment and workforce.
• Finish and deliver the work in the agreed time.
• Achieve the fulfillment of the objectives at a certain cost and time.
• Cut prices.
• Offer reliability and product quality.
• Be flexible in case of necessary changes.

Basic Operations Management Features

Enter the fundamental functions of this administration, the following can be mentioned:

Processes

It refers to the design of the material production system, where it is decided what type of technology will be used, how the distribution of the facilities, the analysis and control of the process, the balance of the lines and the analysis of the transport.

Capacity

Determines the levels of production of the company in an equitable way, the decisions include the planning, analysis and programming of the facilities.

Inventory

It involves the management of raw materials, development work, and finished products. His activities include when and how much to order and good handling of materials.

Work force

It is based on the classification of employees, be they administrative, specialized and clerical. Their work can be grouped into post designs, worker training, labor measurement, work standards and stimulation techniques.

Quality

It is the part that guarantees the quality of the products and services the company offers through the performance of functions such as quality control, testing, certification and price control.

Performance of operations managers

Efficient administrators carry out various functions of the administrative procedure to achieve with success each of the decisions, which consist of organizing, directing, assigning staff, planning and control. Among the most relevant strategic decisions made by operations managers are:

• The design of goods and services.
• The location, process and distribution strategies of the facilities.
• Product programming and maintenance.
• Efficiency of the Human Resources department.
• Administration of the supply chain, inventories and product quality.

Fundamentals of Operations Management

The current administration works on the following fundamental aspects:

• The teamwork, which involves suppliers and in turn customers.
• The excellent quality, which is understood as a specific fulfillment that is generated due to the demands of customers and consumers.
• The scientific administration, which implies decision-making based on facts, which would include knowledge of variations, an approach focused on the development of procedures and systematic analysis.

Areas of activities of the operation of operations management

Among the areas of activities are:

• Operations strategy: Determines the activities of the operations in support of the general strategies of the company and carry out a strategy that is appropriate and functional.
• Capacity planning: Establishes how much and when the equipment, facilities and processing must be available.
• Project management: Plan and control project tasks to meet performance, scheduling, and pricing requirements.
• QA: Indicates how the quality level has to be developed and maintained.
• Product planning: Designs and chooses the products and services that the company will offer to its clients and sponsors.
• Inventory management: Indicates the amount of raw materials, work in progress, and finished products to be stored.
• Programming: It informs when the activities should be done during the transformation process and the place where the materials have to be.

The business operations management area, focuses on the research and development of the different procedures that provides the greatest value through planning, direction, control and organization in the production of goods and services and thus increase the quality of products and in turn satisfy customers by lowering prices, which would be a great benefit and a success for the business.